Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Question
Chapter 3, Problem 17P
To determine
Introduction: Taxpayers are allowed to deduct business gifts to the extent of $25 per done per year. Small gifts costing up to $4 has no limitation, and also gifts to the employees for length of service is deducted up to a limit of $400.
The amount of deduction for business gifts allowed to S for 2019.
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Students have asked these similar questions
Marco makes the following business gifts during the year:
Miss Scarlett (a potential client)
$30
Mr. and Mrs. White (both are clients)
$40
Professor Plum (a client)
$18
Mrs. Plum (the nonclient wife of Professor Plum)
$12
Charles Mustard (Marco’s boss)
$27
Marco also spent $15 on wrapping paper and a card for the above gift to the Whites.Calculate Marco’s total allowed deduction for gifts
Carol makes the following business gifts during the tax year.
Calculate Carol's allowed deduction for each business gift and her total allowed deduction. If an amount is zero, enter "0".
Donee
Amount
Deduction
1.
Mr. Jones (a client)
$20
$fill in the blank 1
2.
Mr. Brown (a client)
32
fill in the blank 2
3.
Mrs. Green (a client) received a $15 gift while herhusband, Mr. Green (a non-client) received an $18 gift
33
fill in the blank 3
4.
Ms. Gray (Carol's supervisor)
45
fill in the blank 4
5.
Mr. Edwards (a client) receiving a display rack with Carol's company name on it
75
fill in the blank 5
6.
Various customers (receiving ball point pens with the company name on them)
140
fill in the blank 6
Total business gift deduction
$fill in the blank 7
11.Bonnie owns a hardware store. During the year, Bonnie gives business gifts having the indicated costs to the following individuals:
Mrs. Johnson (a customer) $37 plus $3 for shipping.
Mr. Johnson, (non client husband of Mrs. Johnson) $10
Ms. Doncan (a customer) $22
What is the amount of Bonnie's deduction for business gifts?
Chapter 3 Solutions
Income Tax Fundamentals 2020
Ch. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Which of the following formulas represents the...Ch. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Heather drives her minivan 953 miles for business...Ch. 3 - Prob. 8MCQCh. 3 - Prob. 9MCQCh. 3 - Under the high-low method, the federal per diem...
Ch. 3 - Prob. 11MCQCh. 3 - Prob. 12MCQCh. 3 - Prob. 13MCQCh. 3 - Prob. 14MCQCh. 3 - Prob. 15MCQCh. 3 - Prob. 16MCQCh. 3 - Prob. 17MCQCh. 3 - Prob. 18MCQCh. 3 - Prob. 19MCQCh. 3 - Prob. 20MCQCh. 3 - Prob. 21MCQCh. 3 - Prob. 22MCQCh. 3 - Prob. 23MCQCh. 3 - Stewie, a single taxpayer, operates an activity as...Ch. 3 - Prob. 2PCh. 3 - Lawrence owns a small candy store that sells one...Ch. 3 - Business with gross receipts of $25 million or...Ch. 3 - Teresa is a civil engineer who uses her automobile...Ch. 3 - Prob. 7PCh. 3 - Martha is a self-employed tax accountant who...Ch. 3 - Prob. 9PCh. 3 - Go to the U.S. General Services Administration...Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Marty is a sales consultant. Marty incurs the...Ch. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Cooper and Brandy are married and file a joint...Ch. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Cindy operates a computerized engineering drawing...Ch. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Lew is a practicing CPA who decides to raise...
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Similar questions
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